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Business Interruption Insurance covers the profits that would have been earned, based on the financial records, had the disaster not occurred.The policy also covers operating expenses (standing charges). It also reimburses reasonable extra expenses (increased cost of working) incurred over and above normal operating expenses, to avoid or decrease loss of earnings or profits. It protects a business owner against losses resulting from a temporary shutdown because of fire or other insured peril. Generally, business interruption insurance provides reimbursement for lost net profits and necessary continuing expenses (also known as standing charges).

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